Loans

Loans

Mortgage, which in times of crisis has virtually disappeared from the market, to date, managed to return though still not to the same extent. Today in primary and secondary markets at least half of transactions are taking place attracting borrowed money. However mortgages are still very expensive. There is a slight decrease in housing affordability in Kazakhstan. Apartments remain moderately unaffordable. Experts say that economy class housing segment will not increase in price but will seriously grow in volume. This will happen due to a number of government programs and projects. Experts give advice to those who take mortgage loans that in addition to interests on the loan, bank customers are facing other expenses. The most significant expenses are associated with the payment of a lump sum fee for the issuance of a mortgage. Moreover the amount of commission in different banks differs significantly the most common scenario is 1% of the loan amount however there are upper and lower limits. If you take a mortgage loan the loan agreement is a document which will largely determine the state of your personal budget for years to come.

This is not the document that can be signed without reading it. The most important items of a loan agreement include how much and what you will pay as well as what you will be insured against and provisions in the event of any force majeure. A loan agreement usually provides for sanctions for breaching of terms specified in an agreement between a bank and borrower. For many banks this is a legitimate reason to gain ‘profit’ at the expense of a borrower, demonstrating ingenuity worth better causes. Therefore one must pay maximum attention to detail the amount of penalties for late payments, interest on a debt overdue, a right of a bank to set a higher interest rate for arrears or interest on accrued fines.

Car market

Relieving Kazakh fleet from old appliances and significantly increasing the share of production of new vehicles will become possible over the next few years. As experts of the Association of Kazakhstan AutoBusiness note a large-scale program of Trade-In is planned to be launched in the country next year. The essence of the program is that every citizen of Kazakhstan by deregistering an old car and meeting certain conditions of dealers will be able to get a new car. Today Kazakhstan AutoBusiness Association in conjunction with the Ministry of Industry and New Technologies conducted an analysis of the current market of used cars. Several objectives were set, one of which is to find out technical condition of vehicles and their impact on environment in the cities. Experts are now talking about the need to start the development program for recycling on an industrial scale in the country, drawing on the experience of European countries. Moreover gradual purification of the domestic fleet from old vehicles will boost Kazakh manufacturers to produce new cars. According to research conducted by the Association of Kazakhstan AutoBusiness during 9 months new car sales rose by 1,8 times and amounted to 116,1 thousand units compared to the same period last year.

Gold

According to Kapital.kz business portal referring to Bloomberg agency - In 2013, gold imports to China could reach 2 200 tonnes, which is almost twice higher than predicted by the World Gold Council - 1 tonne. The key to assessing the actual state of affairs is the delivery of physical gold (bullions and coins) to the Shanghai stock market which is inherently linked to data on the consumption of the precious metal, published by the People's Bank of China. By September delivery of gold to the Shanghai Exchange reached 546 thousand tonnes. This fact allows us to expect an annual volume of shipments of more than 2 tonnes. The internal volume of gold production in China in the current year is estimated at 420-430 tonnes. According to Swiss refiners a part of imported gold is smelted into smaller bars and sent to the Asian and Eastern markets, including China. In order to have an idea of the scale of trade of gold through Swiss refiners, Koos Jansen notes that during the first three quarters of this year Switzerland imported 2,420 tons of gold and exported 2,184 thousand tons.

Project funding

17 Almaty entrepreneurs – participants of business support program of the ‘Damu’ fund, under the ‘Business Road Map 2020’ program received grants totaling $62 million tenge. In order to qualify for a grant entrepreneurs had to attend special training courses ‘Business Advisor’, make their own plan for the development of the project that is considered by a special Committee. Later on chosen business plan is approved in akimat. Another important criterion is that the project should involve not only the expansion of the business but also serve the development of the city where it is implemented. This implies infrastructure and jobs and increase of tax revenues. One example of participation in the programs of ‘Damu’ fund is the creation of a specialized car service center in Almaty. Amount of the grant for the purchase of materials and equipment amounted to 6 million tenge. The technology allows putting on a special nano ceramic coating on a car allowing its owner to forget about visiting a car wash for almost a year. Another enterprise is a design bureau for the production of patterns for garments. The new equipment of foreign manufacture produces precision sample patterns which are indispensable from the development of modern garment and textile industry. Amount of the grant to this company equaled 3 million tenge.

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